Option grant

An option grant is a right to acquire a set number of shares of stock of a company at a set price. Typically an option grant can be awarded to an employee, advisor or other individual who performs a service for the company, and the option can be exercised during the term of service to the company or for a finite period of time following cessation of services.

There are several terms that are important when considering whether to grant options including the per share exercise price, number of shares, vesting schedule (meaning, the schedule the defines when shares underlying the option may first be acquired), and the period of time in which the option can be exercised.

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